New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-08-23
HENRY S. IVES & co. IN COURT,
Ex-JUDGE DAVIS TO BE THE REFEREE.

EX-JUDGE DAVIS TO BE THE REFEREE.
WITHDRAWAL OF Ex-GoyERNoR HoADIy.s FIRM
Two REASONS GIVEN FOR THIS ACTION.
In compliance with the order issued BY Justice
Donohue of the Supreme Court, requiring Henry 8.
Ives g. Co. to appear before Judge Bookstaver, in
the Court Of Common Pleas. to be examined in re.
gard to the mysterious disappearance OF certain
books of the collapsed firm. Mr.. Ives and his part
ners Stayner and. Doremus, presented themselves
in court at N. yesterday. accompanied by their
counsel. j. j. Adams.
Agernon g. Sullivan, who appeared for his part
ner. William N. Cromwell. the assignee of the bank
rupt frm having stated to the Court that in tho
absence of Judge Booktaver from the city the order
had been obtained from Justice Douohus
and that all the parties were present,
Edward Lauterbach made statement to the conrt.
He said that bis firm. Hosdly, Lauterbach & john
son. did not appear in this proceeding for Henry y.
Ives & Go. When the assignment was made his
firm and Sullivan q Cromwell were the counsel
of Henry s. Ives e. Co. and Mr.. Ives had right to
call upon them TO help his firm in any legal troubles
that it might have. The peakers firm had with
reluctance severed its con nection with Ives g. Co
only because Governor Hoadly was direct or OF the
Dayton Fort Wayne and Chicago Railroad Com
paDy. which is a creditor of Ives & Co.
Judge Bookstaver SAID that the explanation Was
Lauterbach's firm could have acted otherwise. Mr.
Adams said that he had just cono
into the case and had not had time to famiiiarIze
ponemsnt but was oyerruled by Mr. Ives in view
of the criticisms OF the press. He however, raisei
an objection TO the present proceeding on ihe
ground that the twenty days allowed by law to the
ASST gnors within which to file their schedules hal
not expired and there nothing before the court
TO for ord pS' TO-
Judge Bookstaver Overruled the objection, and
Mr. Adams said that be was willing TO proceed be-
fore the Judge or before referee as lie might d.
rect. Mr.. Sullivan said that he had proposed TO
suggest the mans of Hamilton Cole or ex-gudg
Charles p. Dav or ex-Judgc Noah Dasw
Judge BoOkstaver said that he woud appoint ex-
Judge DAILY If he was IN town. and If not he wond
appoint ex-Judge DAVIS. 1t was afterward ascer,
tanned that ex-Judge DAILY was out of town and
the order appointing exJudge Davis will be signed
to-day.
bach & johnson to appearing as tue counsel or
Ives & Co. IN this case IS 81 nply thai ex-oovernor
H0adly, the senior partner. Is director OF the
Dayton. Fort Wayne and Chicago and one or two
other creditor railroads. II was considered im-
proper professionally that he should subordinate
his tduciary duty to the defence of client. 1t
has been well understood, however, that the law
firm would abandon its connection with Ives d 20.
on the nrst pretext The CincinnaI law firm Of
Hoadly johnson was the counsel OF the CInein-
natl, Hamilton and Dayton Company lcng before
ts troll. When they removed their ,,.: BUD:
10 NeW-fOTk 1Qey were DIOuEns
into direct connection with Mr.. Ives, aht iuno-
Gently they were regarded as his personal lawyers
The lie was a slight one, but 1t was sufficient ua-
doubtedly to help the Ives schemes
Ex-Governor Hoad y refused to become the
signee of the broken firm. and Mr. Ives was greaiiS
dsappoirte at this decision. The assignment was
DELAYED for several hours on this account and ~
the necessity was urgent Mr. Ives next turned to
other counsel of tie companies controlled by hs
firm. There is common belief III wall Street tbas
substantial considerations Onlyto0 the settlements
of the firms affairs into the office OF Sullivan d
Cromwell. The assignee has been forced already
TO appeal to the courts to compel the production NJ
missing books. That he should have made such an
application may be considered sufficient proof ot
his regard There is little doubt expressed among
the creditors will soon apply for a receivership.
and possibly the present assignee may not be
opposed to that method of procedure. 1t is tolera
bly, certain that he beheves the members OF the
firm guilty of concealng important books.
A large amount OF the Ives securities has been
advertised for sale at auction to-day and at late
hour yesterday the order had not been withdraw
good deal of curiosity was felt about the sae
because it includes specimen lot OF Ives securi-
ties. be tace value OF the batch IS something
over S5. 700 600 and the loans secured By IL probt
bly, do not AMOUNT to over 100000. The bulk OF
II is known TO be collateral TO loan of $2o2oou
made by Irving A. Evans & Co. and others OF
Boston. Ihc acton of other secured creditors may
DO decided by the SALE
Mr. Ives made the following statement yestcr.
dav:
The total liabilities OF Henry 8. Ives Co arc
sl6479,72S 81 The , asposiIs included amsng them:
the railroads that are Interested in We have
already sed TO the railroad companies themselves over
prices they were originally sold to us. 80 that
nothing Is lost on them In the assets are sovern"sn:
which eommand' premium Of from 20 to 50
Of sss ssss .ssrss %as' .aa % SS 70
duce the net Liabilities to about 50 10000 against
which we hold 2s.000 shares OF Cincinnati Hamilton
and Dayton common stock, 100000 share, Of Daytoa.
Fort Wayne and Chicago, 1900 shares OF Snsinnau
wabash and Michigan and 800 shares OF Mineral
Range stock The value Hamilton and pro-
ferred will be restored by tho withdrawal of the
Mr. Ives supplemented the statement by saying
that his assets would considerably exceed his
liabilities in fact that he could figure out an equity
OF $5 900 900. This entire sum, he added. would
go to his firm with the exception of small part OK
assignment; and they would be able to use 1t to
good advantage. The expert sent West to examine
the Hamilton and Dayton and other properties con-
trolled by Ives & Co. by WuslOw, Lanier IL Co..
who are forming the syndicate to take up the loans
of the Ives firm. yesterday sent letter IN when
he sta ed that the roads wero In admirable condi-
tlou and that the situation was In every way
favorable
The next regular meeting of the Governing Com
N ittee OF the Stock Exchange will be held on the
second Wednesday of september. The sui COM
mittee which has been invesngating the iDsolv-
ency of Ives g. Co. cannot report before that tlmo
unless special meeting should be called for thisex
press purpose The inquiry has not been completed.
however. and persons who remember that the sub
committee Is composed chiefly of governors who
voted for the reinstatement OF Thomas Z. Dore-
mus, the Board member Of the Ives hrm.
are dou btful whether 1t will amount to much In
any event, the subcommittee has no abs0lut0
authority and before the innocence OF Mr.. Doremus
is established ne VIII have TO explain n,s aetr
is presumed iu Wall Street that some OF the thir.
teen members of the present committee, who voted
to relnsate him, will hesitate again to condone ns
offences.
AN EDITOR ARRESTED FOR ASSAULT.